Any tax implication

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Tushar (Querist)
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05 July 2013 If Mr.x going to buy property for Rs.7 Lacs & he took loan from funds, freinds & banks etc. The amount of loan received in cash. But Mr.X wants to pay to the seller by way of cheque. Then Mr.x gave cash to his sons & took cheque from them & made payment.In the above situation whether any tax implication involved? whether any notice will be issued for the same from IT dep? As such big amt deposited & cheque issued? whether this transaction report in AIR in 26AS.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 If loan is recvd in cash then sec 269SS is applicable and penalty in also applicable of equal amount.

Tushar

Tushar (Querist)
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05 July 2013 Mr. X have no cheque facility to issue the cheque & hence is received cheques from his children? how to handle this transaction?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 Then Mr x should 1st open a bank account and get all the diff loan in cheques in it and then issue cheque for making payment in cheques from this a/c.

Tushar

Tushar (Querist)
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05 July 2013 What if he was not aware about this provisions & has done as stated by me not intentionally?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 July 2013 Irrespective of whether the assessee knows about the provison if its violated then A.O will invoke sec 269SS

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